Dutchess Capital will provide $15 million in equity financing to Melbourne, Australia-based Motopia Ltd. The funding is designed to be pulled down in tranches over the next three years. Each tranche will total up to $300,000. At no time will Dutchess Capital hold more than 19.99% of Motopia, the company said in a press release.
The Board of Motopia Limited (ASX:MOT) is pleased to announce that it has signed an equity facility agreement with US based Dutchess Capital to provide long-term funding for working capital of up to $A15 million. The equity facility provides a solid base of funding to Motopia over the next three years.
The funding allows Motopia to call on funds when needed, in tranches of up to $300,000 per drawdown (or up to $500,000 if agreed by the parties). At no time will Dutchess Capital hold more than 19.99% of Motopia.
Dutchess Capital is an investment manager which provides creative financing for public companies. Founded in 2000, Dutchess has been a global leader in Equity Line Facilities (ELFs) for almost a decade, and has transacted in excess of $1.8 billion in such financings worldwide. The ELF is a flexible financing structure by which publicly traded companies can raise capital quickly, efficiently, and with less dilution than most traditional offerings.
Executive Chairman of Motopia, Jitto Arulampalam stated “This investment shows clearly the level of faith there is in Motopia, the Board have worked tirelessly over the last 12 months, with many hurdles to overcome to create a company with a solid foundation. To develop the world standard solutions we pride ourselves on and for the timely deliverables of these solutions, Dutchess Capital has offered us the fuel we need to get there quickly. There’s nothing stopping us now.”
Chief Executive Officer of Motopia, Matthew Gerard, said today “The Board is delighted to have secured this investment relationship with Dutchess Capital. This investment demonstrates that Motopia is on the world stage and that our suite of full service mobile marketing solutions is being noticed. We are extremely excited about a number of projects we are currently working on and this facility will allow us to accelerate the roll out of these projects in the months ahead.”
Douglas Leighton of Dutchess Capital said today “We are very pleased to be working with Motopia and look forward to providing them with the capital to execute on their roll out of projects in the upcoming months. “